Hi Jo-ann,

Kevin is right on target. All the liens SHOULD be removed during the foreclosure process but sometimes errors or omissions are made. The same is true for the title itself. Something as simple as someone putting the wrong date on a document can add a flaw to the title. That happened on a house I recently bought and, although it should have been a simple fix, it held the closing up for several months. All the more reason why you need to be represented by an attorney. Banks and mortgage companies require that you buy title insurance for you to obtain a mortgage. This is normally part of the standard closing process.

Bob Caron

Jo-ann- It is true that through the foreclosure process all liens on the property should have been removed. Those liens are generally a financial burden. What a foreclosure does not do is remove any prior clouds to the title. The problems can be as simple as an undischarged mortgage from an out of business bank or as complicated as finding out a signature was missed from a seller 50 years ago.(technically that property had no business being transferred if that was the case) It can be very complicated and if you are considering purchasing a property with title issues, I would highly recommend consulting with an attorney to make sure your rights are protected.

Kevin Vitali- Your Tewksbury MA Realtor

There are many variables that can be included here. Was Wells Fargo the original lender? If not, there can be confusion as to who holds the mortgage to the home. Title might show that other lenders (previous lender and/or 2nd mortgage) may still have entitlements. There could be a Mechanic's Lein on the property if the owner did not pay a contractor. You should speak with the closing attorney as soon as possible about the detailed nature of the problem. Then speak with your lender to see if it affects your financing. The more information you gather, the better for you.

Jo-Ann

You have to be more specific with "issues." There are many things that can affect title from an improperly signed document to a lein. Just because a bank has taken the property back does not mean a title is clear. Most like ry ly it is something simple your title comapny or attorney can clear up before closing otherwise the closing can be postponed until the bank can transfer the title unincumbered. Check with your closing agent or attorney to find out exactly what the problem is and if it will delay the closing.